SACRAMENTO (CBS13) – Capitol Democrats are lashing out today against Amazon.

They are accusing the giant online retailer of offering phantom jobs to change the law.

Democrats say Amazon will never deliver those 7,000 jobs to California – but critics say the only phantom thing here is the tax revenue that Democrats are counting on.

Amazon has offered to bring thousands of warehouse jobs to California – if the company gets a 2-year pass from collecting California’s new online sales tax for out of state retailers. Democrats at the Capitol joined together today to say collectively: No Deal.

“Now let’s talk about those phantom jobs,” said Assembly Speaker John Perez. “They very jobs they’re promising us here in California are jobs that they’re promising other states as well. What they’re engaged in is tantamount to economic bigamy,” the Speaker told Capitol reporters.

But the California legislature is already banking on $200 million in annual revenue from the so-called Amazon tax – yet not one single online retailer has registered with the state to start collecting it – according to the Board of Equalization.

If that trend continues, California could have a $400 million budget hole over the next two years.
Amazon has spent more than $5 million for a 2012 ballot referendum to overturn the new law. Many traditional brick and mortar retailers, including book stores are supporting a new bill that would require Internet retailers to immediately collect sales taxes for online purchases, even if they are located outside the state of California. If approved as an urgency measure, the controversial Capitol bill could not be overturned by voters.

Comments (2)
  1. Fred says:

    JB, Steinberg and porkp Perez don’t care about jobs (unless they are union!). All they care about is their crusade to hurt Amazon. In the end they will get neither the jobs, nor the taxes

  2. Jeff Paulson says:

    If I drive across the border to Nevada or Oregon and purchase items … I am not required to pay taxes on those items to the State of California when I drive back into the State. But if I have it delivered to me from an internet purchase the State wants to collect taxes.

    Once again the State Legislature is blowing smoke up our @$$. They continue to keep finding ways to collect more revenue.

    Imagine how much better off this State’s financial situation would be if these temporary employees would spend that time focusing on ways to reduce spending and eliminating waste rather than just trying to find new and more ways to tax us.

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